June Huntsville, North Alabama Real Estate Sales Up, But So Is Inventory

Huntsville/North Alabama Area MLS Observations: Residential Real Estate Market June 2011

June sales improved 13% to $145,542,154 vs. May at $128,340,889. This was 19% below last year of $180,265,724. The twelve month moving average line on the total dollar sales chart is still down which is a reflection of the unfavorable 2010 sales comparison due to the tax stimulus.

Total unit sales increased from 819 in May to 876 in June, an increase of 57.

New sales increased from 163 homes last month to 183 this month, an increase of 20.

Used sales increased from 656 homes last month to 693 this month, an increase of 37 (Sect E  p.3).

Used inventory levels reached a new high last month at 15 months ( see the chart Sect C p.1), and remain high this month at 15 months, with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over a year of inventory.

New homes absorption is 9 months of inventory overall, (and a new high last month of 10 months), and New homes priced under $100,000, are at 17 months of inventory. Greater than $600,000 are two years or more worth of inventory. In the $100,000-$500,000 range inventories are more normal, ranging from 6-9 months(E-1).

There continue to be a large number of housingpermits issued in Huntsville city, given the market conditions. May showed 98 vs.85 in April (although May’s number was imputed by census department).

Total Active listings decreased by 5% this month to 9,221 compared to last month’s 9,725, which is 6% below last year at this time at 9,815 (Sect A p.4 and Sect E p.3).  Active New listings decreased from 1,551 last month to 1,254 in June, down 297. (Sect E p.3). Active Used listings decreased from 8,174 last month to 7,967 this month, down 207 and below last year’s amount at this time of 8,362. (Sect E p.3).

Average Days on Market for Sold New homes was 176 vs. 184 days last month, with Used at 156 in June compared with 155 in May (Sect A p.18). Days on Market at or below 6 months, while the inventory numbers are higher, indicates well priced homes are selling. Sellers, including bank owners, are not adjusting to the new price reality which contributes to inventory build-up.

Average sales price for Sold New homes was $240,743 vs. $223,325 last month. (Sect A p.2)

Average sales price for Sold Used homes was $146,445 vs. $140,151 last month. (Sect A p.2)

The Average price lines which were on a upwards slope for a while now, turned down particularly for used homes. The fluctuation is mostly due to a changing mix of home sales with some more higher priced homes beginning to move as a proportion of the total market; prices for individual properties remain under pressure.

TWB 7/10/11


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